SUNCALL CORPORATION (5985) AI Stock Analysis

• Market Cap: ¥29.29B
• Dividend Yield: 0.55%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.91
• Revenue Growth: 7.65%
• EPS Growth: N/A
• Country: JP
• Employees: 2,172
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 47.72
• Shares Outstanding: 34,057,922
• 10 Day Avg. Volume: 1,059,930
• 30 Day Avg. Volume: 1,296,726
• PEG Ratio: 0.13
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -3.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,030.00 ▲(11.71% Upside)

SUNCALL CORPORATION's stock is supported by strong technical indicators and reasonable valuation, but financial performance issues, particularly in profitability and cash flow, weigh down the overall score. The absence of earnings call insights and corporate events means the focus remains on improving financial health to enhance the stock's attractiveness.

Positive Factors

Strong revenue growth

24.1% revenue growth signals expanding end-market demand and effective commercial execution. Sustained top-line expansion supports scale economies and capacity utilization, improving prospects for margin recovery and reinvestment in products or markets over the next several quarters.

Material gross margin improvement

A rise to 14.5% gross margin from 3% indicates meaningful improvement in cost structure, pricing or product mix. If structural, this enhances sustainable profitability, strengthens cash generation potential, and provides room to fund growth or de-lever without relying solely on revenue increases.

Solid equity cushion with moderate leverage

An equity ratio of 44.2% and D/E of 0.58 reflect a moderate leverage profile and significant equity buffer. This balance sheet footing improves financial flexibility to fund capex, absorb cyclical shocks, and reduces near-term refinancing risk, supporting longer-term strategic choices.

Negative Factors

Persistent net loss

Ongoing net losses undermine retained earnings and return on equity, constraining the company's ability to self-fund growth or invest in competitive initiatives. Persistent negative profitability increases reliance on external capital and raises medium-term financial risk if not reversed.

Negative free cash flow

FCF of -2.44bn, though improved, indicates cash generation remains insufficient to cover investments and operations. Continued negative FCF limits debt reduction and strategic spending, forcing dependence on financing or equity issuance unless operating cash conversion sustainably improves.

Low operating margins

EBIT and EBITDA margins near 5% demonstrate constrained operating leverage and limited cushion for cost inflation. Low margins reduce the firm's ability to convert revenue growth into durable profits and slow deleveraging, keeping profitability fragile absent further structural margin gains.

SUNCALL CORPORATION Business Overview & Revenue Model

Company Description

Suncall Corporation manufactures and distributes automotive parts and materials, hard disk-related parts, and printer and communication-related products in Japan, the United States, China, the Philippines, and internationally. The company offers precision shaped wires and steel wires for valve springs; and automotive products, including valve springs, transmission springs, detent springs, drive plates, press parts, shaped rings, spiral springs for variable valves and seat belts, sensor rings, boot clamps, shunt on bus bars, small springs, motor/stator cores, ring gears, heat-resistant springs, inspection pins for wire harnesses, reactor coils, wave rings/wave springs, bus bars, ECU control parts, valve cotters, accordion springs, tension reducers, and bus rings. It also provides hard disk drive suspensions, such as highly shock-resistant suspensions and DSA suspensions for HDD; and printer-related products comprising tube shafts, carriage guide shafts, shafts for business machines, small springs, press parts, torque limiters, resin-coated tube shafts, clutches for business machines, and screw conveyors. In addition, the company offers connectors and adapters for optical communications; bamboo charcoal for environmental related issues; and measuring instruments-related/other products, such as inspection pins for wire harnesses, cams, probes, and unit assemblies for inspections. The company was formerly known as Sanko Senzai Kogyo Co., Ltd. and changed its name to Suncall Corporation in April 1991. Suncall Corporation was founded in 1943 and is headquartered in Kyoto, Japan.

How the Company Makes Money

SUNCALL CORPORATION generates revenue primarily through the sale of its precision metal components and fasteners to various industries, including automotive and electronics. The company has established key revenue streams by maintaining long-term relationships with major clients and leveraging its reputation for high-quality products. Additionally, SUNCALL has invested in research and development to innovate and optimize its product offerings, which allows it to command premium pricing. Significant partnerships with leading manufacturers in its target sectors also contribute to steady revenue, as these collaborations often lead to bulk orders and ongoing contracts.

SUNCALL CORPORATION Financial Statement Overview

Summary

SUNCALL CORPORATION shows strong revenue growth but struggles with profitability and cash flow. The equity position is solid, but negative net income and cash flow challenges need addressing.

Income Statement

SUNCALL CORPORATION's income statement reveals a mixed performance. The gross profit margin improved significantly to 14.5% in 2025 from 3% in 2024, indicating better cost management. However, the net profit margin remains negative due to a net loss, showing profitability challenges. Revenue grew by 24.1% from 2024 to 2025, suggesting strong top-line growth, but the EBIT margin of 5.4% and EBITDA margin of 5.8% indicate limited operational efficiency.

Balance Sheet

The balance sheet shows a stable equity position with a debt-to-equity ratio of 0.58 in 2025, indicating moderate leverage. However, the return on equity remains negative due to the net loss. The equity ratio is strong at 44.2%, reflecting a solid equity cushion. Despite the leverage being manageable, the negative net income impacts the overall financial standing.

Cash Flow

Cash flow analysis indicates challenges, with a negative free cash flow of -2.44 billion in 2025, though improved from -3.95 billion in 2024. The operating cash flow to net income ratio is unfavorable due to the net loss, and the free cash flow to net income ratio is also negative. The company needs to enhance cash generation and control capital expenditures to improve its cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.04B	63.94B	51.50B	53.40B	47.44B	40.14B
Gross Profit	12.53B	9.30B	2.01B	5.76B	5.87B	3.65B
EBITDA	7.56B	3.73B	-5.48B	5.25B	5.47B	4.54B
Net Income	3.47B	-769.00M	-11.82B	557.00M	904.00M	61.00M
Balance Sheet
Total Assets	57.56B	60.17B	60.45B	63.73B	57.93B	53.38B
Cash, Cash Equivalents and Short-Term Investments	9.93B	9.20B	7.42B	7.71B	7.51B	7.57B
Total Debt	14.32B	15.58B	14.79B	11.03B	7.22B	4.34B
Total Liabilities	29.30B	33.58B	31.10B	25.70B	20.75B	17.06B
Stockholders Equity	28.25B	26.59B	29.35B	38.03B	37.18B	36.32B
Cash Flow
Free Cash Flow	0.00	-2.44B	-3.95B	-2.32B	-2.07B	-2.19B
Operating Cash Flow	0.00	654.00M	678.00M	1.69B	3.17B	3.01B
Investing Cash Flow	0.00	1.00B	-4.32B	-4.95B	-4.82B	-4.36B
Financing Cash Flow	0.00	-284.00M	2.88B	2.78B	1.15B	250.00M

SUNCALL CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 922.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5985, the sentiment is Positive. The current price of 922 is below the 20-day moving average (MA) of 983.55, below the 50-day MA of 993.74, and above the 200-day MA of 717.51, indicating a neutral trend. The MACD of -4.82 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 42.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5985.

SUNCALL CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7228	81 Outperform	¥8.82B	7.58	―	3.19%	5.38%	5.29%
7235	78 Outperform	¥15.16B	7.99	―	4.02%	2.31%	10.68%
7254	76 Outperform	¥16.94B	7.99	―	1.67%	-4.44%	-17.38%
7247	75 Outperform	¥12.85B	4.56	―	3.90%	-1.72%	168.62%
5985	66 Neutral	¥29.29B	7.92	―	0.55%	7.65%	―
7273	62 Neutral	¥21.63B	5.06	―	4.58%	34.99%	468.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%